Omicron’s panic is exaggerated. Buy dips in these stocks, says JPMorgan.

Stock futures point to a recovery except for technology, after reports of the first US coronavirus case hit Wall Street in wild trading day.

for us Today’s call, back to JPMorgan’s house, which suggested that markets were overreacting to the new variable. What if the variable omicron ends up being ‘nu’ as risk-positive? Strategists asked, concluding that investors should buy market dips among some of the major stocks. Note JPM recently released a file somewhat bullish outlook shares in 2022.

“Over the past several days, markets have been in turmoil due to the new COVID variant omicron. However, data on omicron is scattered, information is contradictory, and some media is exaggerating risks and highlighting worst-case scenarios,” wrote chief global strategist Marko Kolanovich and quantitative strategist Bram Kaplan in a note to clients.

They pointed the finger at a “media attack” on Thanksgiving evening, one of the lowest liquid points in the market in a year, which led to the collapse of growth-sensitive assets. They objected to a sale sparked by Moderna’s CEO, which dashed hopes that existing vaccines would work against Omicron. They argued that his comments were “nullified by reports from Pfizer, Oxford, the World Health Organization and the Israeli Ministry of Health”.

Kolanovic and Kaplan said their customers are less concerned about the alternative and more concerned about flight restrictions, which have included a ban on South African flights, but not European flights, where cases have also been spotted.

They described assessments of omicron’s potential transmissibility as confusing at best. “In simple terms, when older variants spread through a penetrating infection, the new variants will always appear to be more transmissible than the old ones.” They supported this with Tweet by biochemist Gabriela Gomez.

Early reports suggest it could be less lethal and, if confirmed in the coming weeks, could turn omicron into positive for markets, the pair said. Kolanovic and Kaplan raised the possibility that a lower-risk, more contagious variant might crowd out more-risk variants, potentially accelerating the end of the pandemic and turning it into seasonal influenza. This is amid vaccines and a growing list of treatments to tackle COVID, said strategists.

“If the market anticipates this scenario — Omicron could be a catalyst for a steeper (not flattening) yield curve, a rotation from growth to value, selling in COVID and lockout recipients and rallying in reopening topics,” the team said.

“Also, if this scenario were to happen, instead of skipping a couple of letters and calling it omicron, WHO could have skipped all the way to Omega. As such, we’re looking at recent sell-offs in these sectors as an opportunity to buy the dip in cyclicalities, commodities , reopening topics, and to identify rising and declining bond yields.”

We hope here they are right.

is reading: Tesla stock is still cheap, says the new ETF manager who made Musk EV the number one company

commotion

An apple
AAPL,
-2.65%

It said Suppliers warn That demand could be softer through 2022. Wedbush analysts raised the stock to $200 from $185, with optimism heading into 2022. They also see the “tech champion” as a “safety cover” in the near-term COVID market storm. Apple shares are down more than 2%.

GlaxoSmithKline
GSK,
-0.44%

GSK,
+ 0.27%

Says Sotrovimab COVID-19 antibody treatment is effective Against the omicron variant, but based on lab test tubes. The United States has Unveil her plan To conduct more stringent COVID-19 testing on international travelers. Germany will Put more restrictions on the unvaccinated.

Meanwhile, infections in South Africa, which raised the alarm last week, reached 8,561 on Wednesday, doubling in 24 hours. A senior scientist in South Africa warned that “more serious complications may not appear for a few weeks”.

WeWork stock
we,
-3.67%

After the Joint Space Group said they would restatement of financial statements He admitted his weakness.

“written mistake” He is responsible for a mysterious group of GameStop
GME,
+ 0.59%

The Fidelity-listed shorts that pissed off the Reddit crowd this week.

Weekly jobless claims rose by 28,000 to 222,000, and we are still waiting for speakers from the Federal Reserve, including Atlanta Fed President Rafael Bostic and a Fed. Randall Quarles, on tap for Thursday.

markets

Stores
DJIA,
+ 1.38%

SPX,
+ 0.85%

COMP,
+ 0.01%

be mixed After the sale on Wednesday. stocks in europe
xxxp,
-1.14%

They still play catch-up and underwater. Asia was a mixed bag. oil prices
CL00,
+ 0.93%

CLF22,
+ 0.92%

It is retreating after OPEC+ said it would extend its current policy and raise production by 400,000 barrels per day in January. Went
GC00,
-0.97%

Treasury revenue decreased
TMUBMUSD10Y,
1.442%

creep higher.

graph

Retail purchases of US stocks hit an all-time high of $2.2 billion on Tuesday, as shown in this chart by Vanda Research. Overall retail volumes, though, were “materially lower than they were in the early stages of the pandemic,” chief strategist Ben Onatibbia and analyst Giacomo Pierantoni wrote.

Vanda Research

random readings

Reddit explains some General Latif. sayings z Like “Okay, Boomer” – to millennials (and this reporter can confirm Gen Zer).

It’s general Raunchy Christmas movie.

Why Walmart
WMT,
+ 0.20%

pulled Rap music and dancing cactus from its online stores.

Just in time for the holidays, Tesla
TSLA,
-1.23%

poses $1,900 Cyberquad for Kids.

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